## Transcript of IMF Press Briefing

_IMF News, March 7, 2019_

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**Canonical URL:** [Transcript of IMF Press Briefing](https://www.imf.org/en/news/articles/2019/03/07/tr03072019-transcript-of-imf-press-briefing)

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## Bibliographic details
- Published: March 7, 2019

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### Press logistics and upcoming events
- Embargoed until 10:30 a.m. Washington time for this briefing.
- Contact details listed: Phone: +1 202 623-7100 Email: MEDIA@IMF.org
- IMF events and travel noted:
  - International Women's Day event: Christine Lagarde and Kristalina Georgieva conversation on leadership; event correction: "the event starts at 3:00 p.m." (originally announced as 3:30 p.m.). Live webcast.
  - David Lipton at CSIS on March 13 to launch an IMF book on the future of China's bond market.
  - Spring Meetings registration noted.
- Fund emphasis: gender issues permeate programs, surveillance, analysis, research, capacity development; Finance and Development magazine issue focused on women's role in the economy.

### Venezuela: situation and IMF engagement
- Current situation described as "one of the most complex situations" with a combination of:
  - food and nutrition crises,
  - hyperinflation,
  - a destabilized exchange rate,
  - debilitating human capital and physical productive capacity,
  - a very complicated debt situation.
- IMF position on engagement:
  - Any determination on recognition of Venezuela's government by the IMF has yet to be made.
  - The IMF is "guided in situations like this by the international community" and by its membership of "189 countries".
  - Prospective engagement is predicated on the determination of official recognition being made.
- Process and Board considerations:
  - Management would make a recommendation to the Executive Board for discussion.
  - Past practice: decision has rested on a majority of the voting par of the members of the Board.
  - Public/official government recognition can sometimes obviate a formal vote if clear.
- Outreach and contacts:
  - Mr. Rice: "I'm not aware" of recent contact between the IMF and Venezuelan authorities or White House staff over the past month and a half.

### European Central Bank (ECB) announcement reaction
- IMF view on ECB actions the morning of the briefing:
  - Revised forward guidance and new targeted refinancing operations are "appropriate steps to maintain strongly accommodative monetary and private sector credit conditions."
  - Such measures are warranted "until inflation is convincingly converging to the objective set by the ECB."

### Zimbabwe: engagements and currency reform
- Visits and meetings:
  - Finance Minister Ncube met with Managing Director Lagarde and senior Africa Department officials.
- IMF interaction:
  - No IMF financing program currently with Zimbabwe; the Fund continues discussions to assist implementation of the transitional stabilization program.
  - Preconditions for an IMF financing program include clearance of arrears to other international financial institutions and financing assurances from bilateral creditors, agreement on policies, etc.
- On recent currency reform:
  - IMF initial evaluation: "a step in the right direction" to address distortions that have impaired macroeconomic outcomes.
  - Success hinges on implementation of:
    - an effective overall monetary policy framework,
    - market-determined interest and exchange rates,
    - prudent fiscal policies.

### Argentina: third review and mission activity
- IMF staff team led by Mission Chief Roberto Cardarelli is in Buenos Aires for the third review of Argentina's economic plan.
- Expected communications:
  - A staff statement is expected "relatively soon" in the coming days; the Board would meet "within a matter of weeks" after a staff-level agreement or staff statement.
- Assessment highlights:
  - "Important progress continues to be made."
  - The plan has been "effective in addressing the major macro imbalances" so far.
- Political engagement:
  - IMF staff met with government, central bank, private sector, academia, civil society, and opposition — described as normal under program conditions.
  - The IMF's mission is to support the country regardless of political changes; elections create uncertainties.

### China: growth target, fiscal measures, and transparency
- Government work report:
  - New growth goal set "between 6 and 6.5 percent" (compared to "around 6.5 percent" last year).
  - IMF view: resetting the growth target allows focus on "improving the quality of growth" rather than high quantity and helps avoid excessive debt.
- Tax and fee cuts:
  - Cuts to the relatively high Social Security contribution rate viewed as "a positive step" because the rate penalizes employment.
  - Reduction in the dispersion of VAT rates is "a positive step" to reduce inefficiencies and tax avoidance.
  - IMF recommendation: accompany these reforms with measures to ensure overall fiscal policy supports consumption, including making the tax system more progressive, expanding health, pensions, education spending, and transferring more to poorer households; ensure fiscal deficit sustainability.
- Transparency and exchange-rate issues:
  - China has "come a very long way" in transparency and openness regarding foreign exchange and currency issues.
  - Further progress under Governor Yi Gang noted.
  - IMF will examine these issues in detail in the upcoming Article IV consultation "early in the summer this year."

### Greece: post-program monitoring and non-performing loans
- IMF status:
  - The IMF is in post-program monitoring with Greece; no financing program currently with the IMF.
  - The post-program monitoring report was expected to be published "next week" (from the briefing date).
- Early repayment of IMF loans:
  - Decision rests with the Greek government, in consultation with other creditors where appropriate.
  - Early repayment would reduce the overall interest rate for Greece but "would not affect the post program monitoring process."
- Non-performing loans:
  - Strengthening bank balance sheets to improve credit provision is an important issue; staff preliminary views referenced in the first post-program monitoring mission.
  - More detailed assessment to appear in the forthcoming post-program monitoring report.

### Haiti: Article IV and proposed financial arrangement
- IMF mission currently in Port-au-Prince to complete the Article IV consultation and discuss a possible IMF financial arrangement.
- Proposed financing:
  - Described as "highly concessional, on the most concessional terms we can offer for Haiti."
  - Will highlight social protection and the fight against corruption.
  - Any fuel price adjustments would be deferred "until the government is able to guarantee that the most vulnerable will be protected."

### Ghana: program conclusion and post-program monitoring
- IMF Board expected to consider the combined 7th and 8th reviews of the program by the end of the month, which "would indeed successfully conclude the program."
- Post-program engagement:
  - Regular Article IV surveillance, capacity development, and a post-program monitoring arrangement as is normal.

### Egypt: fourth review publication
- Egyptian authorities have agreed to publish the staff report and related document for the 4th review; IMF expects these documents "to be posted very soon."

### Jordan: donor conference and financing needs
- London Donors Conference:
  - IMF Managing Director Lagarde attended; IMF strongly supports increased external financial support for Jordan.
- Economic challenges:
  - Growth is low; unemployment high especially for youth and women; high public deficit and debt levels; the refugee crisis places extraordinary strain.
- IMF stance:
  - Jordan "needs additional financial support, particularly in the form of budgetary grants" to help reform and build resilience and self-reliance; IMF will push for the right kind of external support.

### IMF governance and recognition procedures (as applied to country authorities)
- Recognition process overview:
  - Management discusses the issue and makes a recommendation to the Executive Board.
  - Decisions have rested on a majority of the voting par of the Board members in the past.
  - If public and official statements by governments make recognition clear, a formal vote may not always be necessary.
- Other international organizations:
  - The situation for Venezuela was noted as fluid; other organizations, including the United Nations, "have not made this determination as yet."

*IMF Communications Department — March 7, 2019.*

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## References

- [Arab Republic of Egypt and the IMF](http://www.imf.org/external/country/EGY/index.htm)
- [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)
- [Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)
- [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)
- [Haiti and the IMF](http://www.imf.org/external/country/HTI/index.htm)
- [Jordan and the IMF](http://www.imf.org/external/country/JOR/index.htm)
- [República Bolivariana de Venezuela and the IMF](http://www.imf.org/external/country/VEN/index.htm)
- [Zimbabwe and the IMF](http://www.imf.org/external/country/ZWE/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Transcripts](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2019/03/07/tr03072019-transcript-of-imf-press-briefing_